Essay on Snuggie and the Market Unit 1

1246 Words Sep 13th, 2012 5 Pages
Snuggie and the Market
Vickie Collingwood
American InterContinental University

Snuggie, the backwards bath robe or blanket with arms that keeps you warm, is convenient, sold everywhere and was advertised heavily on television. It was advertised so much that the company spent $10 million on infomercials alone (Business Insider, 2011). The Snuggie is innovated because it is different. Similar items such as the Slanket and Freedom Blanket were introduced before but failed. So why did the Snuggie make it big? One the name is catchy and sounds cozy, especially compared to Slanket (Business Insider, 2011). Two, CEO Scott Boilen has said the success of Snuggie was also due to consumers wanting to spend more time at home and to be warm and
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When introducing a new item one can face failure. Will the item be accepted by the consumer, is it an item service, or good that is needed? Time and money can be challenge as well and being able to handle rejection and not let the rejection steer you from the end goal (Lambing & Kuehl, 2007). CEO, Scott Boilen, of Allstar Products had seen similar products in magazine and decided to take on the project of providing the item at a lower cost to millions across the U.S.. Mr. Boilen took a risk, he was not the first one to come up with the idea but he thought of a different way to market the item and it worked for him and Allstar Products (Newman, 2005). What Mr. Boilen did not know is how well the Snuggie would take off and become a hot commodity. If the Snuggie was set up as an intrapreneurial product instead of through entrepreneurship there would have been different steps to follow. The company would be taking the risk, dictating what could and could not be done with the product and providing feedback and authorization. The product would have been an inside project from development to marketing. When one takes this to the entrepreneurship the person who came up with the concept idea does everything from development to marketing on their own. This person then takes on all the decisions and financing of

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